would decrease the amount of the max supply of ADA tokens?

With the limited supply, it can build more demand and that might be benefit for the team and also the investors.

  • 3
    This is a StackExchange site, not a connection to the Cardano developers.
    – Cavenfish
    May 26 '21 at 0:32
  • 1
    See help for guidance on how to ask good quality questions
    – gRebel
    May 26 '21 at 0:35
  • I’m voting to close this question because the questions about the future of Cardano can't be effectively addressed on this site and would be better addressed directly to the Cardano Team on their forum. This site is not operated by the Cardano organization.
    – Catija
    May 26 '21 at 13:47

Decreasing the supply is a method to artificially raise the value of the remaining supply. It has been repeatedly stated that all ADA has an owner/purpose and supply will not be reduced. ADA relies on use and utility to increase its value.


If you're interested in supply/demand, look at the staking metrics and the effect that is has on the price of ADA. The price of ADA denominated in USD and BTC has held up very well on this recent market drop.

Currently ~71% of the circulating supply is staked leaving ~29% either in wallets & unstaked or for trading purposes/on exchanges. This really didn't budge during the recent downturn -> a sign of positive community sentiment, but also Cardano saw the most inflows (+10M) this past week from Institutional Investors compared to BTC(-110.9M) and ETH(-12.6M) outflows.

Overtime as more people/corporations/institutions recognize Cardano's value proposition, the demand will continue to build and they'll all be bidding more and more for less and less available ADA.


The maximum supply is set. There are two obvious ways supply can absolutely reduce.

  1. The person holding the secret key for addresses with unspent transaction outputs (UXTO) destroys or permanently loses the encryption keys for those outputs. This effectively means destroying/losing the wallet recovery key for the wallet that generated those addresses.

  2. Paying the ADA to a script transaction that will never validate a transaction from that address. There is a straightforward way to do this: a script that deliberately or accidentally returns error on any spending transaction.

Any normal participant will avoid these two scenarios.

Not the answer you're looking for? Browse other questions tagged or ask your own question.